Cazaly Resources (ASX:CAZ) has entered into an agreement with Dundas Minerals (ASX:DUN) under which Dundas will earn up to an 80% interest in Cazaly's non-core Romano greenfields gold exploration project in Western Australia's north-eastern Goldfields.
Under the deal, Cazaly will receive upfront consideration totalling $500,000, comprising $150,000 in cash and $350,000 in Dundas shares, with potential milestone payments of up to a further $600,000 in cash and $600,000 in Dundas shares upon the grant of additional tenements.
Dundas is also required to spend $2 million on exploration over two years to secure the 80% earn-in.
The Romano Project includes one granted exploration licence and four applications located along the eastern margin of the Yamarna Shear Zone, adjacent to the operating Gruyere gold mine.
Cazaly will retain a 20% interest, free carried to the completion of a positive feasibility study.
Cazaly Managing Director Tara French said the agreement enables the company to focus on its flagship Goongarrie Gold Project while retaining exposure to the exploration upside at Romano.